Palmers in the crisis: bankruptcy application and impending job cuts!

Palmers in the crisis: bankruptcy application and impending job cuts!

The Palmers Textil AG is on the abyss: Invoors were officially registered on Thursday after an application for a renovation procedure with self -administration was submitted to the Wiener Neustadt regional court. The company has to fight around 51 million euros with a debt mountain, a dramatic step that was necessary because "necessary capital inflows did not take place in a timely manner", as was explained in a press release. Despite intensive efforts to win investors for the necessary financing, the success was missing, such as Kleine Zeitung reported.

However, the executives of Palmers are optimistic and work on a "sustainable securing of the company". There is hope that ongoing talks with potential investors will be successful and the company can be brought back to success in the medium term. More than 500 employees are directly affected, and the payment of the outstanding salaries should be made via the insolvency fee fund, the company emphasized in its message.

rapid decline in business figures

The signs have been on storm for weeks. As a precaution, Palmers registered dismissals in the AMS premature warning system, and the company figures speak a clear language: In the 2023/24 financial year, the loss of almost 15 million euros more than tripled, while sales dropped from 71 to 66 million euros. In addition, there is a significant covid loan for repayment at the end of June, which also tightens the situation. Last autumn it was announced to close 20 branches in Austria. According to Exxpress , the challenges due to strong competitive pressure, rising interest and inflation, which resulted in the decline in purchasing power, are decisive factors for the bankruptcy.